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In Defense of the Wall Street Bonus

This short video from One Minute MBA examines the concept of bonuses on Wall Street and considers why (some) people who work in finance get paid such large bonuses. Essentially bonuses - or performance linked pay - are useful from a corporate governance, business and financial management perspective; but the impact on the wider economy is also very important. While it's easy to understand the frustrations of some people during the financial crisis on why bankers bonuses are so high, the fact is there is a good reason behind it. Of course - if you believe the matter is still open for debate we would love to hear your argument in the comments section below.